Function documentationReorganization of Fixed Assets

 

In a reorganization, you can automatically reorganize fixed assets:

  • You can reorganize fixed assets for which the profit center is assigned directly by means of a cost object (such as an internal order or a WBS element):

    • You can change the profit center in the cost objects and reassign the affected fixed assets.

    • At the same time, the system transfers the balances for fixed assets from the old to the new profit center in new General Ledger Accounting as well as in Asset Accounting.

  • Furthermore, you can reorganize fixed assets to which a profit center, as opposed to a cost object, is assigned directly. The following also occur in this case:

    • Reassignment (assignment of the new profit center in the master data of the fixed asset) and

    • Transfer of the balances

In general, you can perform the reassignment automatically with the reorganization. However, whenever it is not possible to assign the new profit center automatically, you have to assign it manually in the cost objects (in the case of real estate keys, internal orders, WBS elements, and cost centers, for example).

Note Note

A prerequisite for the reorganization of fixed assets is that the profit center and segment have been defined consistently in the fixed asset master records. This consistency is achieved with the Customizing settings for Segment Reporting for Fixed Assets. For more information, see the section “Prerequisites”.

End of the note.

Integration

The reorganization of cost objects and fixed assets forms part of the profit center reorganization. With the derivation hierarchy, the system considers any relationships to other objects that have imparted their profit center assignment to or inherited their profit center assignment from cost objects or fixed assets.

Fixed Assets in the Derivation Hierarchy

A fixed asset can be a first-level object in the derivation hierarchy or an object on a lower level:

Object on first level

No cost object is assigned to the fixed asset; instead, a profit center is assigned directly to it.

Example Example

A fixed asset does not have a profit center from other cost objects assigned to it. If the fixed asset now needs to be assigned to a new profit center, the fixed asset is included in the reorganization.

End of the example.

If the fixed asset does not inherit its profit center from the cost object, but rather the profit center is entered explicitly in the asset master record, the fixed asset is a first-level object in the derivation hierarchy. In this case, the following steps need to be performed within a reorganization plan:

  1. Generation of an object list

  2. Reassignment and transfer of the fixed asset

    Note Note

    Unlike in the case of other object types, the reassignment in the master data and the transfer of balances are performed in one step for fixed assets.

    End of the note.
Object on the second level

A cost object is assigned to the fixed asset and the profit center is derived from that cost object.

Example Example

A fixed asset has inherited its profit center from the cost center. If the fixed asset now needs to be assigned to a new profit center, the fixed asset is reorganized within the same reorganization plan.

End of the example.

The profit center can be derived from the following cost objects, which can be assigned to a fixed asset:

  • Cost center

  • WBS element

  • Internal order

  • Real estate object

    Real estate objects are not part of the standard derivation hierarchy and they are consequently not automatically included in the reorganization.

Special features for cost centers:

For cost centers, there are special prerequisites so that the system considers them as objects on the first level of the derivation hierarchy and considers fixed assets as objects on the second level. When these prerequisites are fulfilled, the cost center is included in the reorganization plan. In this case, you do not have to perform any reorganization activities for the cost center (that is, you do not need to generate object lists or perform reassignments or transfer postings). You only need to perform such reorganization activities for lower-level objects beneath the cost center in the hierarchy. Once the system has included the cost center in the reorganization plan, the system issues a confirmation message accordingly for the relevant fixed asset.

For the system to be able to include the cost center in the reorganization plan, you need to create a new time slot with a changed profit center for the cost center. For this, the following prerequisites must be met:

  • The key date of the cost center change (period begin) and the reorganization date are the same.

  • The reorganization plan contains the change from a profit center to another profit center.

  • No postings have yet been made to the cost center in the reorganization period. The CO period must still be closed from the reorganization date for all actual CO transactions. You can check this in the program Check Period Lock for CO Transactions.

For more information about reorganizing cost centers, see Reorganization of Cost Centers.

Prerequisites

Before you can start the reorganization of fixed assets, the following prerequisites must be met:

  1. You use Asset Accounting (FI-AA) in your production system.

  2. You have activated segment reporting in Customizing for Asset Accounting under Start of the navigation path Integration with General Ledger Accounting Next navigation step Segment Reporting Next navigation step Activate Segment Reporting End of the navigation path.

    You have performed the activities listed here, in particular the following activities:

    • You have activated the account assignment objects Profit Center and Segment.

    • In the asset master records, you can entered consistent data in the fields Profit Center and Segment. It must be possible in the asset master record to derive a unique profit center for all posting-relevant cost objects.

  3. In Customizing for Asset Accounting under Start of the navigation path Integration with General Ledger Accounting Next navigation step Additional Account Assignment Objects Next navigation step Activate Account Assignment Objects End of the navigation path, you have set the Acct Assignment Object Same in Asset Master and Posting indicator.

  4. You have ensured that the prerequisites for the reorganization are met and you have made the general Customizing settings for the reorganization in General Ledger Accounting (New) under Reorganization.

    For more information, see Prerequisites and Customizing Settings for the Reorganization.

  5. You have run the program Consistency Check for Fixed Assets. This program specifies for selected fixed assets whether they can be reorganized consistently. It must be possible to derive a unique profit center – from the cost objects as well as from the fixed asset itself.

    Note Note

    Once a fixed asset has been included in the object list, you can no longer change the assignment of the account assignment objects outside the reorganization.

    We therefore recommend running the consistency check on fixed assets before you start the reorganization.

    If the program returns a negative result for a fixed asset, that fixed asset cannot be reorganized. (Example: In the master record of a fixed asset, a cost center and an internal order are assigned, but you only want to change the cost center). In other words, no reorganization activities can be performed within the reorganization plan.

    If the reorganization plan contains the cost center, you have the following options for resolving this conflict:

    • You remove the internal order from the fixed asset, or

    • You also include the internal order in the reorganization plan.

    End of the note.

    You find the program for checking the consistency of fixed assets in Customizing for the Reorganization under Start of the navigation path Reorganization of Fixed Assets Next navigation step Check Profit Center Assignments in Asset Master Records End of the navigation path

    You have resolved any inconsistencies in the profit center assignment.

Before the transfer posting:

Before you can start transferring fixed assets, the following prerequisite must be met:

For the fixed assets to be reorganized, all period-end closing activities need to have been performed completely and closed for the prior period before that prior period can be closed (programs Asset Fiscal Year Change (RAJAWE00) and Year-End Closing: Asset Accounting (RAJABS00)).

Limitation after the reorganization:

Note the following limitation: After the reorganization of fixed assets, none of the postings with the old profit center that were made before the reorganization date can be reversed. You need to ensure this from an organizational point of view.

Features

During the reorganization, the system selects all cost objects that are assigned to a profit center to be reorganized. As the reorganization manager, you can choose user-definable selection criteria to restrict the number of objects in the reorganization plan.

Special features for fixed assets

In the reorganization of fixed assets, the following special features apply:

  • When a profit center is assigned to the fixed asset by means of a cost center, the following applies:

    If you assign a new profit center by means of a cost center and the above-listed prerequisites are met, the cost center is automatically included in the reorganization plan.

    These fixed assets are then second-level objects in the derivation hierarchy. You also need to generate an object list for second-level fixed assets.

  • Simultaneously in a single step, the fixed assets are reassigned and the asset balances are transferred.

  • With the transfer posting, the system posts the acquisition and production costs in aggregated form as well as the cumulated depreciation to the new profit center. This aggregated transfer posting includes the total of all APC postings that occurred up to the reorganization date.

  • At the time when the transfer posting is made, the reorganization date is usually in the past. The asset balances are then transferred with the current date (system date) as the posting date. Even when the reorganization date is in the future, the asset balances acquire the current date (system date) as their posting date.

  • If the cost center is changed in the asset master record and this results in a reassignment of the profit centers assigned to the fixed asset, the system automatically transfers the corresponding asset balances. In such cases, you do not need a reorganization plan.

Need for a Reorganization Plan for Indirect Assignments (Fixed Asset –> Cost Center –> Profit Center)

Whether or not you need to perform a reorganization depends on how a new profit center is assigned to a fixed asset when profit centers are reassigned:

  • The cost center is assigned to a new profit center.

    Example Example

    Fixed asset A is assigned to cost center 1. A new profit center needs to be assigned on a key date (reorganization date).

    End of the example.

    In this case, a reorganization plan is necessary.

  • The fixed asset is assigned to a new cost center (with a new profit center).

    Example Example

    Fixed asset A is assigned to cost center 1. The assignment needs to be changed in cost center 2. (Different profit centers are assigned to cost centers 1 and 2).

    End of the example.

    In this case, a reorganization plan is not necessary. Instead, you change the cost center directly in the asset master record. The system automatically makes the corresponding transfer posting on the current date.

Constraints

The following constraints apply in the reorganization of fixed assets:

  • The reorganization of group assets is not supported. Consequently, you can only reorganize fixed assets consistently when you do not use group assets.

  • If a cost center is changed in the fixed asset, the transfer posting is made automatically, but without any reorganization. However, unlike in the reorganization, this cannot be scheduled for the future. Instead, the transfer posting must be made on the current date (system date). (See the last example above).

Activities

For information about the process flow of the reorganization for fixed assets, see Reorganization Process for Fixed Assets.